DOJ/SEC Release Unprecedented Guidance on the FCPA

Yesterday, the Department of Justice (“DOJ”) and the Securities and Exchange Commission (“SEC”) released their much anticipated and long overdue guidance on the Foreign Corrupt Practices Act (the “FCPA”): A Resource Guide to the U.S. Foreign Corrupt Practices Act (the “Resource Guide” or “Guide”). The 120-page inter-agency Guide is in its own words an “unprecedented undertaking,” representing the first time the government has provided a thorough analysis of the FCPA, clarifying information that had been previously scattered across a collection of informal opinions and judicial decisions. The Guide provides comprehensive information, including practical tips, to assist companies as they navigate the very fact-specific FCPA enforcement scheme.

While offering no bright-line rules on the FCPA, the Guide repeatedly highlights the need for companies to take a proactive, risk-based approach to stamp out corruption and effectively puts companies and their counsel on notice that there is a new, higher expectation of FCPA awareness. Indeed, in his brief remarks yesterday, SEC Director Robert Khuzami promised “vigorous prosecution of those who break the law [and] an equally vigorous effort to enable those who seek to abide by the law.”

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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